| Product: |
Independent Financial Advisors in general |
| Date: |
08/05/01 (186 review reads) |
| Rating: |
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This is a review on how to get your business plan approved...
After the invasion of Internet, in the last 7 years or so, lots of investment companies have turned themselves in to Angel’s who put heavy money on a good idea. The other factor is that most of the heavy funding have don’t lot of flacks in the current technology market. Its very important, that these VC’s have become now more rigid in their policies.
Some of the VC’s no doubt have done some bad investments but again it is not their fault, it is the people who have taken money and used it for personal purposes. What’s happening today is a IIT graduate has some great idea, and he presents it in a nice manner to these VC’s and they do get funded, but happens next is that, the amount of money pumped in is heavy and these fresh IITian’s don’t have the sustainability to continue in a proper manner, they start spending lavishly and get away from their business goals and you blame the Internet that one more dotcoms is falling.
If we actually scrutinize the entire downfall of this so called dotcoms bubble, the companies which have really fallen are the one, who have spent lavishly on Salaries, spent heavily on advertisements, heavily spent on Infrastruture, they really don’t have any proper revenue model in place. I agree with the fact that most of these VC’s are dumb and they have made some terrible investment. Imagine a guy like Rupert Murdoch putting money on websites like Chaitime and Netplilgrim Its really sad to see some good amount of money going waste.
Now, I wanted to get in some money for my venture and “IT IS NOT A DOTCOM VENTURE “ for at least 4mths I studied VC’s style of working and what I needed to get my idea’s being funded.
First let us know what is this VC’s all about…
Venture Capitalist
Venture capital is a form of financing for a company i
n which you give up some level of ownership and control of the business in exchange for capital over a limited timeframe, usually 3-5 years. The exit of the venture capitalist can be an IPO, a merger or acquisition, or a buyout of the investor.
Unlike banks, which seek their return through interest payments, venture firms are looking for capital appreciation. Their payoff is how much their original investment has increased. Venture firms generally are looking for a return of five to ten times the original investment at exit
Now, we know what a VC, is let us understand what is business plan all about.
Business Plan
Business plan is a detail about the venture, which you are getting into. If you are seeking start-up funding for a new business or funds for expanding your present business, your investors or banker will expect you to have a business plan available for their review. All businesses need a plan to define where they are going and how they are going to get there.
These are some information you need in your business plan.
Who your customers are by their age, sex, income/educational level and residence (or if this is a wholesale business, by industry, size of business, location)?
What is the size of your customer base by the categories above?
Who are your direct competitors?
Who are your indirect competitors (products that aren’t the same as yours, but are an alternative for your customers; for instance, a train is an indirect competitor for an airline, whereas different airlines are direct competitors with each other)?
Now if your expertise is not in making business plan but you know what to be their in that plan, then get hold of consultants who charge pretty high, but it will be worth it, because they specialise on that and their wont be any loop holes in the plan. You don’t want anything to go wrong on the last moment. Because, its your Baby and you don’t
want it to fail.
Once your Business Plan is ready you need to get your plan approved so what do you do next.
1. First and the most important thing, “BELIEVE IN YOURSLEF “
2. Preparation is a critical factor in funding. Allocate plenty of time and energy to it. Plan each and everything at least 4 to 5mths in advance.
3. See to it that all your financial details are in place.
4. Identify professional references who can support your reliability and the need for your product.
5. Write a business summary covering the main points of the business plan. This will be the first introduction of your business. Getting past the first cut will depend on how well you sell your business in this summary.
6. Identify venture capital firms that specialize in your type of business.
7. Learn as much as possible about the funding process for each of the firms.
8. If possible talk with businesses that have been funded by each of the firms.
9. Select 8-10 venture capital firms that you definitely wish to approach.
10. Customize submission information to fit the preference of each firm, including reformatting the business plan if needed.
11. About 2 weeks after applying, call to arrange for an in-person visit, if possible.
12. Do not be afraid to continue to keep in touch. Do not be a pest, but also do not be afraid to ask when you might know something and if they mind you checking in occasionally.
Whom…do they fund…
Business opportunities are everywhere for venture capitalists. Hundreds of business plans cross their desks every month, offering myriad opportunities. However, the successful venture capitalist invests in people first and business plans second.
Though the theory were in real estate the investors looks for, the three biggest criteria are ’’location, location and location.’’ The venture capita
l axiom is people, people and people.
There are five major characteristics that investors look for in entrepreneurs are:
Leadership. It’s often assumed that entrepreneurs are born leaders, but that’s not necessarily true. Sometimes it takes years to acquire the quality. And sometimes it never surfaces.
Vision Vision doesn’t come magically; it comes from hard work. Thomas Edison said, ’’Opportunity is missed by most people because it is dressed in overalls and looks like work.’’ The entrepreneur should need a vision and goal of were to take his business then only he will be able to take his business to leaps and bounds.
Integrity Unlike leadership and vision, this quality is nearly impossible to assess on first impression. But after six months of working closely with an entrepreneur, integrity, or the lack of it, becomes apparent
Openness Its always said that you need to have a flat organisation and should listen to others. Its important that you don’t make them follow you, they should follow you on their own. Its necessary to respect thoughts and take input from others.
Dedication: Much has been written about the classic traits of entrepreneurs: stubbornness, dedication, pursuit of a goal despite adversity. The importance of perseverance and patience in all those entrepreneurial efforts cannot be underestimated.
Overall, you need to believe in what your are doing and need to be street smart. Have a vision, have a goal, you will see that you will grow really high in life..
HAVE A SUCCESSFUL CAREER!!!
Explore your way to glory…
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Last comment:
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peel.rebekah - 08/05/01 EXTREMELY useful op. Thankyou...I feel all motivated now :o) |
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